Raghuram Rajan takes over from Subbarao at RBI

Based on his track record, India Inc. feels that he would be able to rescue the economy despite the challenges. Rajan, who has been in the Finance Ministry as the Chief Economic Advisor for barely a year, replaces Duvvuri Subbarao as the Governor.

Click NEXT to read more...

Image: Raghuram Rajan (L), newly appointed governor of Reserve Bank of India (RBI), signs papers during the taking over ceremony at the bank's headquarters in Mumbai.Photographs: Danish Siddiqui/Reuters

Raghuram Rajan takes over from Subbarao at RBI

Besides combating the key issues like volatile rupee and CAD, Rajan will have to take a call on continuing with RBI's practice of mid-quarter policy review every 45 days, which was initiated by Subbarao.

Raghuram Rajan takes over from Subbarao at RBI

There has been speculation that Rajan is not in favour of mid-quarter reviews and could dispense with the practice, although the scheduled mid-quarter review due later in the month would be brought out.

Raghuram Rajan takes over from Subbarao at RBI

His appointment comes at a challenging time, when the economy is battling industrial slowdown, declining rupee, rising prices and all-time high CAD. As regards the Current Account Deficit, there has been some signs of improvement in the first quarter mainly on account of decline in gold imports. (Text courtesy, PTI)